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Section 3(m) of the FLSA, 29 U.S.C. 203(m), provides in part that an employer may take a partial credit (tip credit) against its minimum wage payment obligation to a tipped employee based on tips received and retained by the employee.  The Department’s regulations limit an employer’s ability to use an employee’s tips regardless of whether the employer takes a tip credit under section 3(m) or instead pays the full FLSA minimum wage directly to the employee. In this Notice of Proposed Rulemaking, the Department will propose to rescind the current restrictions on tip pooling by employers that pay tipped employees the full minimum wage directly.